5 Stocks in Breakout Territory With Big Volume

DELAFIELD, Wis. ( Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.

From a technical perspective, MAN jumped higher here right above some near-term support at $71.74 with above-average volume. This stock has been uptrending strong for the last three months, with shares moving higher from its low of $53.60 to its recent high of $77.32. During that uptrend, shares of MAN have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of MAN within range of triggering a big breakout trade. That trade will hit if MAN manages to take out some near-term overhead resistance levels at $76 to its 52-week high at $77.31 with high volume.

Traders should now look for long-biased trades in MAN as long as it's trending above Wednesday's low of $73.55 or above support at $71.74 and then once it sustains a move or close above those breakout levels with volume that hits near or above 602,036 shares. If that breakout hits soon, then MAN will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $80 to $83.

StealthGas

StealthGas ( GASS) owns a fleet of LPG carriers providing international seaborne transportation services to LPG producers and users, as well as crude oil and product carriers chartered to oil producers, refiners and commodities traders. This stock closed up 8.6% to $10.66 in Wednesday's trading session.

From a technical perspective, GASS skyrocketed higher here right off its 200-day moving average of $9.98 with heavy upside volume. This move pushed shares of GASS into breakout territory, since the stock took out or flirted with some near-term overhead resistance levels at $10.33 to $10.72. Shares of GASS are now quickly moving within range of triggering another major breakout trade. That trade will hit if GASS manages to take out Wednesday's high of $10.72 to more resistance at $11.49 with high volume.

Traders should now look for long-biased trades in GASS as long as it's trending above its 200-day at $9.98 or its 50-day at $9.43 and then once it sustains a move or close above those breakout levels with volume that hits near or above 181,822 shares. If that breakout triggers soon, then GASS will set up to re-test or possibly take out its 52-week high at $12.10. Any high-volume move above $12.10 will then give GASS a chance to tag $13 to $14.

From a technical perspective, NNI spiked higher here back above its 50-day moving average of $38.54 with above-average volume. This move pushed shares of NNI into breakout territory, since the stock took out some near-term overhead resistance levels at $38.61 to $38.65. This move is quickly pushing shares of NNI within range of triggering another near-term breakout trade. That trade will hit if NNI manages to take out Wednesday's high of $40 and then once it clears its 52-week high at $41.74 with high volume.

Traders should now look for long-biased trades in NNI as long as it's trending above its 50-day at $38.54 or above Wednesday's low of $38, and then once it sustains a move or close above those breakout levels with volume that this near or above 69,791 shares. If that breakout hits soon, then NNI will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $45 to $47.

E-Commerce China Dangdang

E-Commerce China Dangdang ( DANG) is engaged in online saldes of books as well as other media products and selected general merchandise categories. This stock closed up 8.5% at $11.70 in Wednesday's trading session.

From a technical perspective, DANG ripped sharply higher here right above some near-term support at $10.50 with heavy upside volume. This move pushed shares of DANG into breakout territory, since the stock took out some near-term overhead resistance at $11.31. Shares of DANG have been uptrending strong for the last month, with shares soaring higher from its low of $7.68 to its intraday high of $11.72. During that move, shares of DANG have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of DANG within range of triggering another big breakout trade. That trade will hit if DANG manages to take out Wednesday's high of $11.72 and then its 52-week high at $12 with high volume.

Traders should now look for long-biased trades in DANG as long as it's trending above some near-term support at $10.50 or at $10, and then once it sustains a move or close above those breakout levels with volume that hits near or above 2.88 million shares. If that breakout hits soon, then DANG will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $14 to $15.

Uni-Pixel

Uni-Pixel ( UNXL) is a production stage company. It manufactures electronic film products using its proprietary manufacturing process, UniBoss. This stock closed up 4.6% to $19.70 in Wednesday's trading session.

From a technical perspective, UNXL ripped sharply higher here with heavy upside volume. This move pushed shares of UNXL into breakout territory, after the stock took out some near-term overhead resistance at $19.59. Shares of UNXL also flirted with its 200-day moving average at $20.29 and more resistance at $20.39, after the stock hit an intraday high of $20.83.

Traders should now look for long-biased trades in UNXL as long as it's trending above Wednesday's low of $18.23 and then once it sustains a move or close above Wednesday's high of $20.83 with volume that hits near or above 1 million shares. If we get that move soon, then UNXL will set up to re-test or possibly take out its next major overhead resistance level at $25.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.